The shares of Telefónica and Santander were registering strong declines on the stock market in the early stages of this Monday's session, after the current president of Brazil, Luiz Inácio Lula da Silva, won in the second round of the presidential elections held this Sunday and was reelected for a new term at the head of the South American country, surpassing by a narrow margin the far-right candidate Flávio Bolsonaro, the winner in the first round.
Around ten in the morning, the operator's shares fell by 7.23%, to stand at 3.17 euros, while those of the bank dropped around 4.6%, to 10.98 euros.
The stock market punishment to both companies is linked to the election results in the Latin American country, given the high exposure of their businesses in this region. Telefónica operates there under the brand Vivo and Santander has its main subsidiary outside Europe in Brazil, where it positions itself as the fifth largest commercial bank in the country by asset volume.
In this context, Vivo obtained net earnings of 2,833.6 million Brazilian reais (486 million euros at the current exchange rate) in the first six months of 2026, a figure that represented a year-on-year increase of 17.9% compared to the same period of 2025 and the largest advance in a first half in the last three years, according to the accounts submitted by the company.
Likewise, Vivo consolidated in the second quarter of 2026 the positive evolution of its main financial indicators, registering a net profit of 1,600 million reais (275 million euros), 17% more compared to the same period of the previous year.
For its part, Santander Brasil achieved an ordinary net profit of 1,093 million euros in the first half of 2026, which represented an increase of 4.8% at constant exchange rates, and 9.7% in current terms, compared to the same period of the previous year.